KUALA LUMPUR: Pioneer Heat Holdings Bhd expects its new headquarters in Sendayan and new office in Sarawak to strengthen its operating capabilities and support revenue growth as the group expands its market presence.
CEO and executive director Wong Wei Ken said the new facilities would give the group greater capacity to pursue opportunities, particularly in the central region and East Malaysia.
“The investment in these facilities will enhance our capabilities. So far, we are exploring markets in the central region, and we believe our potential revenue will increase as we expand our facilities,” he told reporters after the group’s ACE Market listing in Bursa Malaysia yesterday.
Pioneer Heat debuted on the ACE Market of Bursa Malaysia with shares opening at RM0.25 per share on its first day of trading as a listed company.
As at 10 am, the price stood at RM0.32 per share, up from its IPO price of RM0.25 per share, a premium of 30%. The stock closed at 30 sen at 5pm yesterday.
Through the IPO, Pioneer Heat raised RM21.68 million in gross proceeds from the issuance of 86.70 million new shares.
Of this, RM4.00 million will be allocated to set up its new Sendayan headquarters, while RM2.07 million will go towards establishing the new Sarawak office. Another RM4.01 million will be used to purchase machinery and equipment, RM7.90 million for working capital, and RM3.70 million for estimated listing expenses.
The group intends to utilise the IPO proceeds to strengthen its operating platform and support its next phase of growth.
Malacca Securities Sdn Bhd is the principal adviser, sponsor, underwriter and placement agent for this IPO.
The new Sendayan headquarters is expected to comprise an administrative office, warehouse, and workshop to serve customers in the central region, with planned capabilities including fabrication works for pipe spools and pipe structures, hydrotesting works, heat treatment services, and valve servicing.
Meanwhile, the new Sarawak office is intended to strengthen the group’s presence in East Malaysia by providing more space for fabrication activities, storage of materials, machinery, equipment, tools and consumables, and support for undertaking larger mechanical engineering projects in the region.
Wong said the group’s growth strategy would be supported by its long operating history and in-house technical expertise, which he described as key differentiators in a competitive mechanical engineering services market.
“We have been established in the market for almost 39 years and have extensive experience in the industry. We also have in-house technical expertise to provide mechanical engineering services,” he said.
Pioneer Heat provides mechanical engineering services covering the full lifecycle of industrial plants, from construction and maintenance to refurbishment.
Looking ahead, Pioneer Heat sees the oil and gas and petrochemical sectors as key drivers of its future growth, with the group actively pursuing new projects through ongoing tenders.
Wong said the group is currently involved in several tender exercises but could not disclose project details at this stage.
“Our main growth drivers are expected to be the oil and gas and petrochemical markets.
“We are currently very active in tendering for projects, and while we cannot disclose the project names, we are aiming to secure several projects in the coming period,” he said.
At the same time, the group is looking to diversify its project base beyond its traditional markets, with utilities and manufacturing among the sectors it is targeting.
“Looking ahead, we remain focused on delivering sustainable growth by building on our established track record, technical capabilities and long-standing customer relationships,” Wong said.
He said the industry outlook remained supportive, with continued demand for mechanical engineering services in the oil and gas and petrochemical sectors.
“While oil and gas and petrochemicals remain important markets for us, we are also trying to diversify our projects into utilities and manufacturing,” he added.
The diversification strategy is intended to broaden Pioneer Heat’s market exposure while allowing the group to leverage its existing technical capabilities across a wider range of industrial projects.
Wong said Pioneer Heat has not seen any slowdown in project execution or tender activity despite continued tensions in West Asia and volatility in the oil and gas market.
